Can Life Exist Without Credit Cards?

Recently I listened to a recording from Crown Ministries as well as read several articles about NOT using credit cards. When it comes to credit cards, I think there are 2 extreme view points. One totally is against using credit cards at all and what I shall call credit card experts.

Credit card experts know everything, almost, of credit cards. I know of people who uses a complex system of using overdraft and credit cards to manage their finances. From what I understand, it is bordering on micro managing money. I have to say, I’ve not tried it myself so my comments may not be exactly true. However, thinking of it already gives me a headache.

Taking the middle road on the use of credit card, I still think that if you CAN control your spending, credit cards are okay. Credit cards have not been a problem for me because I pay off everything when it is due. Having said that, I’ve been penalized twice. Once for paying late because the statement got lost and another time, it totally forgot I had to pay. Since then, I never missed a payment. Thank goodness for auto deductions and internet banking.

My rationale of using cards then is I carry less cash and accumulate points which I have redeemed for a fruit juicer, casseroles sets and more recently a external hard drive plus some petrol vouchers. Quite substantial over the years of using credit cards. I wonder over the inconvenience of NOT using credit cards.

Just 2 weeks ago, I had a major repair on the car which was unplanned. I never had such a huge bill after driving for so many years so when I was presented with a quote for over $1,000 I was in a bit of a shock. But the repairs must be done sooner or later and being someone with some mechanical sense, I knew the longer I delay, the more damage I’ll cause to the transmission. So, in when the car to the workshop and a week later, I was poorer by $1,000.

Now, while the car was in the workshop, we used our second car which was a cheaper car. After using the car fro 2 days, the air conditioner gave up the ghost. Another unexpected bill of $300 came. Gasp. I paid the 2 bills with my credit card but I don’t intend to make partial payment.

We took a hit financially this month but our emergency fund will take care of it. Using the interest free period and timing the transmission repair gave me me additional time to adjust our spending over this and the following month.

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